Learn how syndication deal structures work—equity splits, preferred returns, waterfalls, and fees. Invest smarter with CREI Partners.

Not all syndication deals are created equal. In this episode, CREI Collin breaks down the essential components of syndication deal structure—equity splits, preferred returns, waterfall structures, and fees—so you can evaluate deals with confidence and ensure your sponsor is aligned with your success.

Whether you're reviewing your first Private Placement Memorandum or comparing multiple deals, this episode gives you the framework to ask the right questions and avoid costly mistakes.

In This Episode, You'll Learn:

• [00:00] Introduction – Why understanding deal structure is critical before you invest
• [02:15] Equity Split Basics – The 70/30 split and why the total fee structure matters more than the split alone
• [05:30] Preferred Returns (Pref) – How an 8% preferred return protects you, and why cumulative vs. non-cumulative matters
• [09:00] Waterfall Structures – Tiered profit-sharing and how promote structures align sponsor incentives with your returns
• [12:45] Fees Breakdown – Acquisition, asset management, disposition, and construction management fees explained
• [16:00] Evaluating Sponsor Alignment – Five key questions to ask before you invest
• [18:30] Recap & Action Steps – How to review a PPM and evaluate deal structure like a pro

Key Takeaways:

✅ A 70/30 equity split isn't automatically better than 80/20—you need to look at the total fee structure

✅ A preferred return (pref) is a non-negotiable investor protection—and it should be cumulative

✅ Waterfall structures reward sponsors for outperformance, but watch for aggressive promotes that take too much too soon

✅ Sponsors should have skin in the game—co-investing their own capital alongside LPs

✅ Always read the PPM section on distributions and fees carefully, and ask questions if something doesn't make sense

Resources Mentioned:

Ready to start evaluating syndication deals? Schedule a free consultation with CREI Partners: https://calendly.com/shelbi-creipartners/30min

Disclaimer:

This podcast is for educational and informational purposes only and does not constitute investment, tax, or legal advice. Always consult with your CPA, attorney, and financial advisor before making any investment or tax decisions.

• (00:00:01) - Building Passive Income
• (00:01:25) - Syndication Deals
• (00:03:04) - Preferred Capital: The Preference Return
• (00:04:42) - Profit-sharing Structures With Waterfalls
• (00:06:19) - When evaluating a syndication deal structure, you need to understand fees
• (00:09:53) - Building Passive Income